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Upstreamness in the Global Value Chain: Manufacturing and Services

Author

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  • Kenji Suganuma

    (Bank of Japan)

Abstract

This paper investigates "upstreamness," which measures the distance from the final use in terms of the number of production stages, using the World Input-Output Database's global input-output tables, which cover 40 major countries. We find that global upstreamness increased in the mid-2000s. This trend is mainly due to developments in the manufacturing sector, but the service sector also contributed to the increase. In manufacturing, upstreamness increased mainly in East Asian economies including Japan, which is consistent with the recent deepening of global value chains in this area. In services, the growing role of business services contributed to the deepening of value chains, such as outsourcing via leasing and staff agencies, and linkages to new businesses through mobile telecommunications. In further research, the concept of upstreamness can be applied to the analysis of industries' international competitiveness and of the influence of demand shocks across countries.

Suggested Citation

  • Kenji Suganuma, 2016. "Upstreamness in the Global Value Chain: Manufacturing and Services," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 34, pages 39-66, November.
    • Handle: RePEc:ime:imemes:v:34:y:2016:p:39-66
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    File URL: https://www.imes.boj.or.jp/research/papers/english/me34-2.pdf
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    Cited by:

    1. Kozo Kiyota & Keita Oikawa & Katsuhiro Yoshioka, 2017. "The Global Value Chain and the Competitiveness of Asian Countries," Asian Economic Papers, MIT Press, vol. 16(3), pages 257-281, Fall.
    2. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2022. "Does the Complexity of GVC Participation Matter for Productivity and Output Growth?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 2038-2068, August.

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